Trade Agreement Japan: What You Need to Know About the Japan-United States Trade Agreement
Japan and the United States are two of the largest economies in the world and are key trading partners. In 2018, their bilateral trade totaled $283 billion, with the U.S. exporting $120 billion worth of goods to Japan, and Japan exporting $163 billion worth of goods to the U.S. In an effort to strengthen their economic relationship, the two countries negotiated a new trade agreement which went into effect on January 1, 2020.
The Japan-United States Trade Agreement (JUSFTA) is a bilateral free trade agreement that eliminates or reduces tariffs on a wide range of products, including agricultural and industrial goods, medical devices, and information and communication technology products. The agreement also includes provisions on intellectual property, digital trade, and labor and environmental issues.
This trade agreement is significant for both countries. For Japan, it provides access to the U.S. market with reduced trade barriers. Japan`s exports to the U.S. are expected to increase, particularly in the agricultural sector. For the U.S., the agreement provides greater market access to Japan, particularly for its agricultural products, which have faced high tariffs in the past.
The JUSFTA also includes several provisions on intellectual property, which aim to protect the interests of both countries` businesses. For example, the agreement extends the term of protection for copyrighted works, including music and movies, from 50 to 70 years. It also includes provisions to increase protection for trade secrets and patents.
Another important aspect of the JUSFTA is its provisions on digital trade. The agreement recognizes the importance of digital trade and includes provisions to promote the free flow of data and prohibit restrictions on the transfer of information via electronic means. This is particularly important for the tech sector, which relies on cross-border data flows.
Labor and environmental issues are also addressed in the JUSFTA. The agreement includes provisions that aim to ensure that labor and environmental standards are not undermined by trade, and that both countries` businesses operate in a manner that is consistent with their respective laws and regulations.
In conclusion, the Japan-United States Trade Agreement is an important trade agreement that provides significant benefits to both countries. By eliminating or reducing trade barriers on a wide range of products, protecting intellectual property, promoting digital trade, and addressing labor and environmental issues, the JUSFTA strengthens the economic relationship between Japan and the U.S. and promotes free and fair trade.